Kibo Mining Plc Updated MCPP MOU to Fast-track PPA (6787W)
November 16 2017 - 2:01AM
UK Regulatory
TIDMKIBO
RNS Number : 6787W
Kibo Mining Plc
16 November 2017
Kibo Mining Plc (Incorporated in Ireland) (Registration Number:
451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 16 November 2017
Kibo Mining Plc ('Kibo' or the 'Company')
UPDATED MCPP MOU TO FAST-TRACK DEVELOPMENT AND IMPLEMENTATION OF
POWER PURCHASE AGREEMENT
Kibo Mining Plc (AIM: KIBO; AltX: KBO), the multi-asset
resource, development and energy company focused on Tanzania, is
pleased to announce that, following consultation with the Tanzanian
Ministry of Energy and the Tanzania Electric Supply Company
('TANESCO'), is was agreed to update the existing Memorandum of
Understanding ('MOU') re a Power Purchase Agreement ('PPA') for the
development and implementation of the Mbeya Coal to Power Project
('MCPP'), to provide for a more streamlined process with materially
shorter time lines for PPA finalisation.
The Company has been in very constructive engagement with the
Tanzanian Government and TANESCO over the past two months (see
recent RNS') to conclude the updated MOU that will govern the
process to agree and implement the PPA. All stakeholders have
recognised that the development and implementation of a PPA for the
MCPP must be expedited quickly given the significant delays over
the past year, as well as the strategic importance of the MCPP. As
a result, all parties have agreed to replace the original MOU and
update it to streamline the process for conclusion of the PPA. This
updated MOU has subsequently been approved and confirmed in writing
by the board of TANESCO, and authorized for immediate
implementation.
Accordingly, the approved updated MOU has now been submitted to
all other concerned parties, i.e. Ministry of Energy and the
Attorney General, for endorsement before final signing by Kibo and
TANESCO. This remaining administrative process is already underway,
and the Kibo Board believes it will be completed imminently. Kibo
anticipates providing further information on the material details
of the updated MOU and the expedited time lines therein once the
updated MOU has been fully executed.
Kibo Mining Plc CEO, Louis Coetzee, said, "This agreement
underlines the recognition by all stakeholders that the MCPP
project is of national importance and that there was a need to
define a faster process to reach formal agreement on a PPA via the
MOU. Both the Ministry of Energy and TANESCO recognise the
importance of reaching a final PPA for the MCPP as soon as
practically possible and that the delays in the finalisation of the
MOU and subsequent PPA had to be addressed by a reassessment of the
conditions precedent to ensure that the PPA is expedited and
crystalized for the benefit of all stakeholders. In the
confirmation letter received, TANESCO emphasised the strategic
importance of the MCPP, as well as their support and full
commitment to ensure that the expedited timelines in the updated
MOU, along which the PPA is to be agreed and finalised, are indeed
met.
We continue to work with all parties, including SEPCO III and GE
to execute the milestones associated with MCPP and I would like to
thank all our shareholders and stakeholders for their support and
look forward to updating them on further developments as we
progress and build value for them and Tanzania.".
**ENDS**
For further information please visit www.kibomining.com or
contact:
Louis Coetzee +27 (0) 83 Kibo Mining Chief Executive
2606126 Plc Officer
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Isabel de +44 (0) 207 St Brides Investor and
Salis / Priit 236 1177 Partners Media Relations
Piip Ltd Adviser
Notes to editors:
Kibo Mining is a multi-asset resource development and energy
company focused on South West Tanzania, listed on London's AIM
market and the AltX in Johannesburg. The Company's flagship asset
is the Mbeya Coal to Power Project ('MCPP'), which comprises the
development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation
and the Mbeya Power Plant, a 300 MW mine-mouth thermal power
station.
The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal
coal resource. A Definitive Feasibility Study has been conducted on
the project which underpins its value with an indicated IRR of
69.2%. The 300 MW mouth-of-mine thermal power station has long term
scalability to 1000MW, with a full Power Feasibility Study that has
been published highlighting an annual power output target of 1,8 GW
based on annual average coal consumption of 1.5 Mt. An Integrated
Bankable Feasibility Study report for the entire project indicated
total potential revenues of US$ 7.5-8.5 billion over an initial
25-year mine life, post tax equity IRR between 21-22%, debt
pay-back period of 11-12 years and a construction period of 36
months.
To assist in the execution this critical power project of the
MCPP, Kibo has assembled a team of international team of advisors
and partners including Engineering Procurement and Construction
('EPC') contractors and financial teams that are assisting in the
development of. These include ABSA/Barclays as Financial Advisor,
China based EPC contractor SEPCO III, General Electric, Tractebel
Engineering (Power), Minxcon Consulting (Mining) and legal advisors
Norton Rose Fulbright.
Kibo also holds the Haneti Project on which the latest technical
report confirms prospectivity for nickel, PGMs, gold and strategic
metals including lithium and Rare Earth Elements.
Kibo Mining's projects are located in central Tanzania and in
the Mtwara Corridor in southern Tanzania where the Government has
prioritized infrastructural development attracting significant
recent investment in coal and uranium. The Company has a positive
working relationship with the Tanzanian Government at local,
regional and national levels and works hard to maintain positive
relationships with all communities where company interests are
held. Kibo Mining recognises the potential to enhance the quality
of life and opportunity for Tanzanian citizens through careful
development of its projects.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
16 November 2017
Corporate and Designated Advisor
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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